Can You Get Lawsuit Funding on a Civil Rights or Police Misconduct Case?

By Michael Shemtoub, trial attorney, Beverly Law. Updated November 2026.

The federal claim: Section 1983

Federal police misconduct claims rest on a Reconstruction-era statute. It makes “Every person who, under color of any statute, ordinance, regulation, custom, or usage” of a state deprives someone of federal constitutional or statutory rights “liable to the party injured” (42 U.S.C. 1983).

Who can be sued shapes what a case may pay:

• Individual officers. They are often the main defendants, and qualified immunity (below) is their main defense.
• Cities and counties. The Supreme Court held that “a local government may not be sued under § 1983 for an injury inflicted solely by its employees or agents.” A government is liable when “execution of a government’s policy or custom” inflicts the injury (Monell v. Department of Social Services). The Court has also held that “a municipality is immune from punitive damages under 42 U.S.C. § 1983” (City of Newport v. Fact Concerts).

Section 1983 has no deadline of its own. Courts “should borrow the general or residual statute for personal injury actions” of the state (Owens v. Okure). That is two years in California (CCP 335.1) and Texas (CPRC 16.003), and three years in Washington (RCW 4.16.080).

Qualified immunity and the appeal before trial

Under the standard set in 1982, “government officials performing discretionary functions generally are shielded from liability for civil damages” unless their conduct violates clearly established statutory or constitutional rights that a reasonable person would have known (Harlow v. Fitzgerald). Whether a right was clearly established on the facts of a case can be argued on a motion before any trial.

The timing matters as much as the rule. The Court has called qualified immunity “an immunity from suit rather than a mere defense to liability,” and held that a district court’s denial of it, to the extent it turns on an issue of law, is an appealable “final decision” even though the case has not ended (Mitchell v. Forsyth). So an officer who loses that motion can appeal, and the case can pause while the appeal is decided.

For anyone weighing an advance, this means two things. A claim against an officer can end on immunity without a trial. Most advances are non-recourse, so you would normally owe nothing then, though contracts can make exceptions; see what happens if you lose your case. And an appeal can add a long stretch during which charges keep growing under most contracts.

State-law claims and government claim deadlines

Many cases also include state-law claims, such as battery or negligence, against the city or county. Those claims usually carry their own notice rules:

These rules do not govern the federal claim. When a Section 1983 suit is brought in state court, a state notice-of-claim law “is pre-empted” (Felder v. Casey). The six-month California rule is explained in more detail on our page about claims against a city or county.

Fee awards under Section 1988

In a Section 1983 case “the court, in its discretion, may allow the prevailing party” a “reasonable attorney’s fee as part of the costs” (42 U.S.C. 1988(b)). A fee award is separate from your damages, and the Supreme Court has held that Section 1988 “does not interfere with the enforceability of a contingent fee contract” that gives the lawyer more than the court-awarded fee (Venegas v. Mitchell). Your own fee agreement decides how an award is credited, and that changes how much is left to repay a funder.

Taxes and the payoff

Damages for personal physical injuries, as in many force cases, are generally not taxed. Emotional distress damages that do not come from a physical injury are taxable, and punitive damages are taxable even in a physical injury case (IRS Publication 4345). See is a lawsuit advance taxable for how an advance itself is treated.

California’s funding law limits charges to 36 months from the funding date and requires them to be set by time intervals (Bus. & Prof. Code 6250(a), 6253). Other states differ; see the laws by state table and what pre-settlement funding costs.

What to ask before you sign

• Who are the defendants: individual officers, the city or county, or both?
• Has a government claim been presented for any state-law claims, and when was it rejected?
• Has qualified immunity been raised, and is an appeal pending or likely?
• What will I owe at 12, 24, 36 and 48 months if an appeal adds time?
• How does my fee agreement treat a fee award under Section 1988?
• What case papers would the funder want to see? Read about funding and attorney-client privilege first.

The rest of this section starts at the lawsuit cash advance guide.

Common questions

Related pages

Cash advance on a lawsuit · Laws by state · Injury law FAQs

Important: This page is general information, not legal or medical advice, and reading it does not create an attorney-client relationship. Every case is different; talk to a lawyer about yours. Texas cases are handled by the firm’s Texas-licensed attorneys, Joyce Ondich and John Efstathiou. Last reviewed: November 7, 2026.